In legal action taken on Monday, the New York attorney general's office filed a lawsuit against California-based lender CashCall Inc., accusing the company of “illegally charging triple-digit interest rates on personal loans.”
According to an article in the Los Angeles Times, the lawsuit alleges that CashCall Inc. “charged as much as 355% in interest, far exceeding New York's civil and criminal usury limits of 16% and 25%.”
Also named as defendants in the suit are CashCall subsidiary, WS Funding, and Western Sky Financial in South Dakota, as well as their owners, J. Paul Reddam of CashCall and Martin Webb of Western Sky.
“Western Sky and CashCall charged exorbitant interest rates on their loans to scam New Yorkers out of millions of dollars,” New York Attorney General Eric T. Schneiderman said in a statement.
Read more in the Los Angeles Times
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